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MNB: Claims for damages against IronFX to be reported to Cypriot ombudsman

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Investors who have been unsuccessful in claiming their receivables from Cyprus-based IronFX Global Ltd., which offers cross-border investment services in Hungary, will have to submit their claims to the Financial Ombudsman of Cyprus, the National Bank of Hungary (MNB) said on its website today, according to Hungarian news agency MTI.

The MNB notified the Cypriot supervisory authority last September of customer complaints it received against the company. About 75 customer complained that IronFX Global Ltd., a provider of a platform for online trading, has not been executing payment orders, meaning customers have no access to their funds. IronFx told its customers that it had suspended the execution of payment orders until completion of an ongoing internal audit.

The MNB said today that it had received another 120 similar complaints against IronFX, among them almost 50 Hungarian customer claims in February alone.

The financial supervisory authority of Cyprus (Cyprus Securities and Exchange Commission, CySEC) has been conducting an investigation against IronFX Global since August 6, 2015 on suspicion of violating the relevant laws, the MNB said, reiterating that IronFX Global falls under the jurisdiction of CySEC, and not the MNB. Once the investigation is closed, CySEC will publish its findings on its homepage, and will provide continuous information upon request, it said.

According to CySEC’s new complaint submission procedure, the affected investors must submit their claims to their financial service provider. In the event that the claim is rejected or handled incorrectly, it may be submitted to the Financial Ombudsman responsible for out-of-court investigations, the MNB said, providing the related links and addresses. In a worst case scenario, the compensation claim must be taken to court in Cyprus.

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